The Federal Government has announced reduction of electricity tariff by over 50 per cent in some places in the country.


The Chairman of Nigeria Electricity Regulatory Commission, Dr. Sam Amadi, announced the reduction in a statement issued on Tuesday, March 17, in Abuja.
From his address, we have compiled 10 things you should know about the new electricity tariff.


1. “The review shows that the major underlying cause of the skyrocketing increase in the tariff is the huge Aggregate Technical, Commercial and Collection (ATC&C) losses, which are passed through to consumers. In some DISCOs ATC&C losses raised tariff by as much as 80-103%.”

2. “The Commission has been listening to consumers and taking full account of the impact of high tariff on consumers and the Nigerian economy, has therefore reviewed the basis of the MYTO 2.1 assumptions and has determined that it is inappropriate to transfer to consumers collection losses that are controllable by DISCOs.

3. “The removal of collection losses from customer tariff has reduced tariff by more than 50 percent in some places. Please note that the reduction does not affect the CBN facility and its repayment.”


4. “On Monday, March 9, 2015 the Nigerian Electricity Regulatory Commission (NERC) issued a new order to the effect that henceforth collection loss, which is defined as the ‘amount billed but not collected’, will not be automatically passed on to consumers of electricity. Consequently, the collection loss for all DISCOs is set at zero.

5. “This new direction comes as part of the commencement of the Transitional Electricity Market (TEM). TEM is built on bilateral trading between parties and is geared towards ensuring an efficient market where cost reflectivity will lead to more affordable electric services for consumers. As part of preparing for TEM the Commission has issued a tariff review regulation that requires the utilities to consult with relevant consumer classes before presenting a tariff review application to the commission to approve.”


6. “It is now the responsibility of the DISCOs to prepare and present to the Commission a tariff that will ensure that they recover their costs and ensure efficient operations.”


7. “This new order now amends the MYTO 2.1 and has reduced the tariff to be paid by all class of consumers. In the review MYTO 2.1 the Commission followed due process and the regulatory principles.

8. “The decision to review tariff is completely compatible with the terms of the privatization and has been reviewed with the Bureau for Public Enterprises (BPE). NERC and BPE are working together to advocate for series of fiscal policies that will foster easier access to investible capital to further increase capacity and enhance reliability in the sector.”

9. “Since January 1, 2015 when the Nigerian Electricity Regulatory Commission (NERC) approved the MYTO 2.1 we have received several complaints against the increase in tariff of different consumer classes. Industrial and commercial consumers under the auspices of the Manufacturers Association of Nigeria (MAN) petitioned the commission asking for a review of the MYTO 2.1 and requested drastic reduction of their tariff. They claimed that such astronomical increase in tariff would kill their business and lead to massive job losses.”

10. “The Electric Power Sector Reform Act and the Business Rules of the Commission mandate the Commission to review its decision at the petition of an interested party who complains within 60 days of the decision. Pursuant to these rules, the Commission organized public hearing and received evidence from consumer classes on the affordability of the new tariff.”

Source:http://nairausd..com/2015/03/10-things-you-should-know-about-50.html

wait make I read
so now our government don dey listen to our cries.
just in case make them help us to reduce the cost of Internet subscription. na wetin they hit guys hard be that.




anyway
Sai baba

This reduction is for commercial and industrial users

So everything is revolving around DISCO.
When i heard about the 50% reduction, i knew the faith of distribution company were at stake

chudionu58:
This reduction is for commercial and industrial users

Who else uses the power apart from commercial and industrial users?

Can someone pls interpret d passage to me?

Please summarise and repost! Better still interpret in Yoruba language, as per our 2nd National lang

This explanation complex ooo...Abeg whoever don understand d document should try n explain to us abeg

Charpell:

Who else uses the power apart from commercial and industrial users?

spiritual and celestial users...na them they enjoy nepa light pass

Hian! Now wey dem don reduce the price nah die be dat o cos we no go dey see the light at-all-at-all again be dat... The time wey tariff high we still dey manage see am use small small.

jonathan and his fire fighter campaign approach

Well, whatever the explanation, the effect will become more reasonable when we begin to have reasonable power supply of a minimum of 16hs/d.
Though in all honesty we might not achieve that nationwide even in the next 4yrs (don't even mind the promises of the political parties).
The reason is simply because we've not been doing what we're suppossed to be doing for the past 40-50yrs ago.

Charpell:
So everything is revolving around DISCO.
When i heard about the 50% reduction, i knew the faith of distribution company were at stake

We they don't hurt us later.